3. The STM information environment: drivers for change.

For centuries, the flow of STM information was managed through a publishing system, supported mainly by scientific societies, and an access system, provided primarily through public and university libraries. Based on print technology, this system served the needs of the day and evolved slowly and predictably. NRC-CISTI, as Canada's national science library, and the NRC Research Press, previously known as NRC Research Journals,¹ served Canadians well within this paper-based paradigm.

This world was thrown into turmoil with the advent of modern information technology and the Internet in the late 20th century. In today's world, STM information is available instantly at the click of a mouse from a wide variety of sources resulting in users' expectations of service being very high. Scientific publishing is in the midst of a revolution that is generating a multitude of new approaches to making the results of research more widely accessible and actionable.

A coherent understanding of this rapidly evolving world is essential to identify the drivers, impacts, and new directions that will shape NRC-CISTI's future. NRC-CISTI is a complex, multifaceted organization operating within an equally complex environment. NRC-CISTI's diverse client base adds to this complexity. NRC-CISTI's primary focus is on service to Canadians in the government, industry, academic, and health sectors. In addition, services are also offered to clients around the world based on a business model that includes full cost recovery and the generation of revenues that NRC-CISTI reinvests to support its national mandate.

As a result NRC-CISTI is influenced by many factors operating within its environment, including the global market forces in the STM information content and publishing industries, changes in the scholarly communication system, and national directions and initiatives. The following sections illustrate how these factors impact on NRC-CISTI and its user communities.

Forces within the STM information marketplace influence not only the expectations and needs of clients, but also the business environment in which NRC-CISTI functions.

3.1 Global market forces

The way that researchers share, access, and use information is changing and nowhere has the impact been more disruptive than in the information content industry. New technologies are making STM information available to a broader audience at a speed never seen before. Powerful free Internet search engines provide access to a dazzling amount of information. Empowered by the promise of technology, users are driving seismic changes in the way STM information is created, shared, accessed, and used.

With the widespread use of the Internet to publish and access information, the sources and markets for information have become increasingly international. Users have a wide choice of where, from whom, and how they will obtain STM information.

Competitive positioning

In response to these opportunities, new services and players have emerged. STM providers have invested in electronic systems to enhance access to their services and content. The race to build new online publishing and information access services has favoured the STM information providers who have access to investment capital. This has created increased competition among STM information providers, which has led to mergers and industry consolidation.

The entry of commercial publishers into STM publishing dramatically changed the dynamics of this field, which was previously the domain of scientific scholarly societies. A few large commercial publishers have gained dominance in the market². Having acquired or developed many of the most prestigious journals in a number of STM fields, the large commercial publishers are able to compete for the best authors. They have solidified their market position by acquiring smaller publishers and streamlining the channels to market. They have also invested in online submission and publishing tools, as well as electronic access to their content.

As a result of this increased competition, many not-for-profit STM publishers, such as scientific societies, academic presses, and the NRC Research Press, find it more difficult to attract authors, stay up to date with technology, and grow revenues needed to support their activities and introduce new services.

Monopolization of STM publishing by large commercial publishers has resulted in collection costs for STM libraries that increase by a factor of more than 10% per year for the last decade.³ Faced with increasing costs for STM information resources, and in many cases reduced budgets, academic libraries have developed new approaches to providing service to their clients. Canadian academic libraries have responded with the incorporation of the Canadian Research Knowledge Network (CRKN), which grew out of the Canadian National Site Licensing Project (CNSLP). This initiative, funded by the universities, provides desktop access for Canadian academics to a wide variety of electronic STM journals through nationally negotiated licenses with the publishers.

To further control costs, academic libraries have harnessed the power of technology to increase electronic resource sharing, formed national and regional library consortia, and rationalized their collection acquisitions. They have come to rely on NRC-CISTI to hold and provide permanent access to the STM journals that they cannot afford to acquire electronically. They have also turned to alternative suppliers in the field of STM information delivery. These include commercial information organizations, such as Nerac, Inc., and Infotrieve, and NRC-CISTI-like organizations, such as Institut de l'information scientifique et technique (INIST, France), Los Alamos Library, Commonwealth Scientific and Industrial Research Organization (CSIRO, Australia), and the British Library. All of these organizations have undertaken to provide access to electronic resources directly to the user's desktop.

Impacts on NRC-CISTI

NRC-CISTI faces the same challenges as the academic libraries in maintaining and developing its collection. Annual increases in journal prices, static government funding (A-base), and the costs of maintaining print and electronic versions of journals have resulted in a dramatic decline in NRC-CISTI's buying power and therefore in the number of active serial titles that NRC-CISTI can afford to hold.

Increased competition and the growth of alternative ways of accessing STM information have impacted on revenue from NRC-CISTI's business lines. Starting in 2002 – 03 revenue from document delivery has declined each year due to decreasing order volume; this is expected to continue for the foreseeable future. During the same period revenue from publishing has stabilized, although moderate growth is expected in the future through improved production processes and new product and service offerings. Balanced against the need to enhance and diversify the collection, provide new services, and invest in new technologies, growth in NRC-CISTI's current business lines is not expected to offset increasing costs.

To address these challenges, NRC-CISTI must develop partnerships and define a new funding model that addresses the realities of today's STM information marketplace.

NRC-CISTI is recognized internationally as a strong competitor in document delivery, offering excellent service and quick turnaround times. (Outsell 2003). In order to retain its leadership position, NRC-CISTI must offer more comprehensive electronic content and services to its users, including efficient client relations.

3.2 Open Access — transforming scholarly communication

The Open Access movement started as a reaction by librarians to what was seen as the excessive pricing practices of commercial STM publishers. Their concerns were echoed by researchers and others who felt that the results of publicly funded research should be freely available. Support for this idea has been growing.

Recently the "open-access" movement received several high-profile endorsements:

• The Association of Learned and Professional Society Publishers declared itself "wholly in favour of maximizing access to research literature... " (Summer 2004)
• The UK House of Commons Science and Technology Committee urged that papers produced by publicly funded research should be put in free repositories soon after publication (Summer 2004)
• A U.S. House committee has recommended that the National Institutes of Health (NIH) post its grantees' papers on a free Internet site (Summer 2004)

Historically the costs associated with the publication and dissemination of scientific research have been covered by the subscribers, mainly institutions such as libraries. In the Open Access model, it has yet to be determined who will bear these costs. The most frequently proposed model is based on authors paying for their articles to be published and to be universally accessible. A logical extension of this approach is for authors to self-archive, possibly in an institutional archive. These approaches would shift the costs of publication or any other form of dissemination and (or) preservation to the researcher's institution or to the public agencies supporting the research.

STM publishers are responding to calls for Open Access with new proposed models of their own. One model would provide the publisher with a limited period of monopoly on rights to the material that they publish after which access to the content would be free.

Scientific societies and for-profit publishers alike are concerned that such initiatives will drive traditional peer-reviewed journals out of business. The proposed "author pays all" model has not yet been proven to be a viable business model. Granting agencies are not lined up in sufficient numbers to provide publishing grants. Scientific societies subscriptions would dry up if essentially the same material were available immediately for free on the Web. "Author pays" schemes have led to concerns that not-for-profit organizations, which rely on the revenue generated from their journal subscriptions, would struggle to keep themselves afloat (BBC, August 2004).

Studies show that readers and authors appreciate the professional input that goes into producing readable journals of high scientific and editorial quality. Librarians are sympathetic of the plight of scholarly journals since very few hold that publishing is costless and few are of the opinion that publishers do not add value to what authors create. Scientific publishing is demonstrably a valuable service and one that does not come cheap, particularly in this era of electronic development.

Although it is still unclear what model(s) will eventually emerge in response to Open Access, one thing is certain — emerging models will have to be grounded firmly in economic reality to have any chance of success.⁴

Impacts on NRC-CISTI

This decade will see continuing experimentation with Open Access models and growing pressure on publishers to make journals partially or fully open access. This will have significant impacts on not-for-profit publishers, including NRC-CISTI's publishing program, the NRC Research Press. NRC-CISTI already provides free access for Canadians to the electronic versions of the NRC Research Press journals and monographs. This access is supported by funding from the Government of Canada through the Depository Services Program, administered by Public Works and Government Services Canada. However, NRC-CISTI relies on revenue from the sale of NRC Research Press publications outside of Canada.

NRC-CISTI must be aware of and respond to trends regarding Open Access and will need to develop a new funding model for its publishing activities that will take these trends into account.

Open Access may result in reduced collection costs for libraries. However, costs related to maintaining permanent storage and access may rise. As the trend to institutional repositories becomes a standard practice, NRC-CISTI is positioned to develop an institutional repository for NRC and may be called upon by the government to provide broader access to R&D outputs of Canadians through a national repository.

New challenges and opportunities created by the outcomes of the Open Access movement will impact on NRC-CISTI's collection costs and policies and on how NRC-CISTI provides access to STM information in the new paradigms.

3.3 Key technologies for the future

The future is being shaped today by emerging technology that is transforming the way information is created, managed, and disseminated. Information networks are integrating resources in a seamless way, providing users with broad access to content, wherever it is held. All aspects of service provision in today's environment depend heavily on information technology. It is critical that STM information providers and publishers invest in the technologies that meet users' needs.

Impacts on NRC-CISTI

NRC-CISTI must continue to invest in technologies that will allow it to deliver STM information to its clients where, when, and how they want it.

NRC-CISTI must update and integrate its information technology infrastructure and applications to provide fast, efficient, flexible, affordable, and responsive systems.

3.4 Canada's innovation environment

3.4.1 Investments in collaborative multi-sector research and development

Over the past decade, the Canadian government has placed a high priority on investing in the country's research capacity and strengthening the innovation system. One key thrust has been to encourage greater collaboration among the public, private, and academic sectors as a mechanism to derive greater value and facilitate the commercialization of research findings.

To support this thrust, the Federal government has developed multilateral funding mechanisms including joint interdepartmental initiatives, foundations, and special corporations to further collaboration and research in specific areas. Examples include Genome Canada, Sustainable Development Technologies Canada, and the CBRN⁵ Research & Technology Initiative.

The government also encourages research and development by the private sector and has put in place mechanisms to foster investment in areas of strategic potential. For example, Technology Partnerships Canada, a Federal government technology investment fund, supports research and development by targeted Canadian industries including environmental technologies, life sciences, information and communications technologies, and advanced manufacturing, as well as technologies related to hydrogen as a fuel source. Other sectors identified as key to economic development are mining and forestry, manufacturing, automotive, and aerospace.

Working with collaborative research teams that include partners from different sectors creates unique challenges in terms of equal access to STM information resources.

Impacts on NRC-CISTI

Providing information services to support national strategic initiatives is a key opportunity for NRC-CISTI identified in this Strategic Plan. NRC-CISTI must identify initiatives where it can best add value to accelerate the creation of knowledge wealth and benefits for Canadians.

NRC-CISTI must align its STM information resources and service offerings to support research and innovation activities in research-intensive private sector industries.

3.4.2 Federal research and development

S&T research and development undertaken by the Federal government has an important role in support of policy development, regulations, standards, and issues of public health and safety, the environment, and defence. This role is unique to the government; neither the universities nor the private sector have mandates or responsibilities in these areas.

In recent years, direct government investment (A-base) in federal government science-based departments and agencies has not been a priority. For example, NRC's A-base appropriation has had limited increases since 1994 – 95. While funds are available for specific initiatives, they are often awarded based on competitive proposals and are of limited duration (for example, funds received by NRC for the Atlantic Initiatives were initially provided for 5 years only). This has limited the potential contributions of federal departments and agencies.

Increased government investment in public sector core research activities and supporting facilities is key to enhancing the ability of federal government science-based departments and agencies, including NRC and NRC-CISTI, to deliver on their mandates and create value for Canadians.

Impacts on NRC-CISTI

NRC-CISTI has a national mandate to maintain the national STM collection and provide access for Canadians. A-base funding provided to NRC-CISTI to fulfill this obligation is currently below the level received in 1995 – 1996. To meet this challenge NRC-CISTI has focused on developing its business lines: document delivery and publishing. Over the years these activities have contributed substantially to financing NRC-CISTI's activities (56% of NRC-CISTI's expenditures in 2003 – 2004 were covered by income). Changes in NRC-CISTI's business environment as outlined elsewhere in this document indicate that this model is no longer sustainable.

3.4.3 NRC directions

As NRC-CISTI implements this Strategic Plan, NRC is undergoing change. The arrival of a new President is anticipated and other key management positions need to be filled. This is an opportunity for NRC to set new directions. After a number of years of expansion that saw the development of new institutes, areas of research, and Industrial Partnership Facilities, NRC is reviewing and focusing its activities. Financial pressures, the need to obtain renewal of government funding for key initiatives, such as the Atlantic Initiatives, and other R&D priorities require NRC to ensure that its core activities are adequately supported. The impacts resulting from the current review of Federal government priorities and activities will also have to be factored in.

NRC will continue to play a leading role in community-based technology clusters,⁶ helping to increase their capacity in key technology fields through jointly developed innovation strategies. NRC's role is based on three key components: its research and development capacities, the Industrial Research Assistance Program (IRAP), and NRC-CISTI. In addition to its role in supporting research at NRC, NRC-CISTI works closely with IRAP to provide information, technology advice, and support to small and medium-sized enterprises (SMEs).

Commercialization, which calls for an enhanced flow of technology to the private sector for wealth generation, has been identified as an important direction for NRC. To support this direction, NRC can be expected to continue its focus on collaborative R&D. This includes partnerships and enhanced collaboration with industry as well as with the academic sector. On the industry side, NRC will continue its emphasis on developing Industry Partnership Facilities.

Impacts on NRC-CISTI

In recent years the number of NRC staff who use NRC-CISTI has almost doubled. In response to expansion at NRC, NRC-CISTI has opened new NRC information Centres, provided services to new NRC research institutes and centres, extended services to companies in new Industrial Partnership Facilities, and offered new services to support commercialization.Working closely with IRAP, NRC-CISTI has introduced a new program to provide competitive technical information and patent information analysis to support small and medium-sized enterprises in making strategic technology and business decisions. To meet the demand for more and different value-added services and to support research in new areas, NRC-CISTI has grown its expertise and information resources. While some funds have been received to support these new activities, most of the monies have come from within NRC-CISTI's budget.

Renewed funding from NRC and more cost-effective ways to provide services are required to allow NRC-CISTI to maintain and enhance its services to support NRC's role in the innovation environment.

NRC-CISTI is and must remain strongly aligned with the long-term innovation agenda of NRC and the Government of Canada in order to provide maximum value for Canadians.

---

¹Established in 1929, the NRC Research Journals merged with NRC-CISTI in 1994 and subsequently was renamed the NRC Research Press.
²Outsell, Financial Performance Scoreboard, Third Quarter 2003: Continuing Growth with Growing Disparity, Volume 7, January 2004. Outsell is a research and advisory firm that focuses on the information content industry.
³Worlock, Kate; The pros and cons of Open Access, September 2004, http://www.nature.com/nature/focus/accessdebate/34.html
⁴Rous, Bernard; Electronic publishing models and the public good, September 2004, http://www.nature.com/nature/focus/accessdebate/33.html
⁵CBRN = chemical, biological, radiological and nuclear
⁶The term community-based "technology clusters" refers to the growth of a significant concentration of innovative companies around a nucleus of R&D facilities.